Ethics in Christian Leadership
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1 Ethics in Christian Leadership General Conference Auditing Service Second International Seminar Chiang Mai, Thailand January 18-24,2008 Presented by: Lowell C Cooper 1
2 2
3 Numbers are sooo much easier than words! They are concrete, specific, definite, are not ambiguous, have no nuances, have no pronunciation or spelling challenges, etc., etc! However, one can tell lies with them! Best wishes! --Eric Korff to Lowell Cooper, 7/31/2007 3
4 Outline The meaning of ethics. Foundations for ethical standards. How are ethical values developed? Why good people make bad choices. Developing an ethical Church. GCAS values. Ethical road hazards for travelers. A personal code of conduct. 4
5 What is meant by ethics? An ethical situation is one in which we recognize that we have to make a choice, and, from the standpoint of right or wrong, one choice may be better or worse than the other. 5
6 What is meant by ethics? Standards of behavior for how humans ought to act in various situations. Not the same as: Feelings Religion Obeying the law Following my culture Scientific advances 6
7 Ethical values cannot be performed by themselves. They are descriptions of the moral quality of an action. Values must be translated into specific observable behaviors, and then those behaviors must be sought, taught, appraised and rewarded. 7
8 Outline The meaning of ethics. Foundations for ethical standards. How are ethical values developed? Why good people make bad choices. Developing an ethical Church. GCAS values. Ethical road hazards for travelers. A personal code of conduct. 8
9 What is the foundation for ethical standards? 9
10 Foundations for ethical values: 1. Religion (the Bible and teachings of Jesus) 10
11 Ethics can be very complex No direct discussion of many current ethical issues in the Bible Nuclear war Genetic engineering Organ transplants Environmental pollution Responsibility of corporations Allocation of scarce medical resources 11
12 Ethics can be very complex No direct discussion of many current ethical issues in the Bible Issues which are discussed in the Bible are not always identical to today they require careful interpretation 1 Cor 11:3-16 Women to use head covering 1 Cor 14:34-35; 1 Tim 2:11-15; Rom 16:7 12
13 Ethics can be very complex No direct discussion of many current ethical issues in the Bible. Issues which are discussed in the Bible are not always identical to today they require careful interpretation. Ethical principles can be in conflict, sparking a debate as to which principle should have priority. 13
14 Ethics can be very complex No direct discussion of many current ethical issues in the Bible Issues which are discussed in the Bible are not always identical to today Ethical principles can be in conflict Wisdom and judgment necessary rather than emphasis on absolute right Rom 14:
15 Foundations for ethical values: 1. Religion (the Bible and teachings of Jesus) 15
16 Christian ethical foundation The person and character of God 16
17 I am the LORD your God, who brought you out of the land of Egypt, out of the house of bondage. Exodus 20:2 17
18 And you shall be holy to Me, for I the LORD am holy, and have separated you from the peoples, that you should be Mine. Leviticus 20:26 18
19 For the LORD your God is God of gods and Lord of lords, the great God, mighty and awesome, who shows no partiality nor takes a bribe. He administers justice for the fatherless and the widow, and loves the stranger, giving him food and clothing. Therefore love the stranger, for you were strangers in the land of Egypt Deuteronomy 10:
20 You shall not pervert justice; you shall not show partiality, nor take a bribe, for a bribe blinds the eyes of the wise and twists the words of the righteous. You shall follow what is altogether just, that you may live and inherit the land which the LORD your God is giving you. Deuteronomy 16:19, 20 20
21 But let him who glories glory in this, That he understands and knows Me, That I am the LORD, exercising lovingkindness, judgment, and righteousness in the earth. For in these I delight, says the LORD. Jeremiah 9:24 21
22 He has shown you, O man, what is good; And what does the LORD require of you but to do justly, to love mercy, and to walk humbly with your God? Micah 6:8 22
23 Therefore you shall be perfect, just as your Father in heaven is perfect. Matthew 5:48 23
24 Christian ethical foundation The person and character of God A biblical worldview (creation, fall, redemption, renewal) The grace of God The presence of God through His Holy Spirit 24
25 The basis of Christian ethics is pleasing God. 25
26 LORD, who may abide in Your tabernacle? Who may dwell in Your holy hill? He who walks uprightly, And works righteousness, And speaks the truth in his heart; 26
27 He who does not backbite with his tongue, Nor does evil to his neighbor, Nor does he take up a reproach against his friend; 27
28 In whose eyes a vile person is despised, But he honors those who fear the LORD; He who swears to his own hurt and does not change; 28
29 He who does not put out his money at usury, Nor does he take a bribe against the innocent. He who does these things shall never be moved. Psalm 15 (NKJV) 29
30 that you would walk worthy of God who calls you into His own kingdom and glory. 1 Thess 2:12 (NKJV) 30
31 urge and exhort in the Lord Jesus that you should abound more and more, just as you received from us how you ought to walk and to please God. 1 Thess 4:1-2 (NKJV) 31
32 for I always do those things that please Him. John 8:28-29 (NKJV) 32
33 He died for all so that all who live having received eternal life from him might live no longer for themselves, to please themselves, but to spend their lives pleasing Christ who died and rose again for them. 2 Cor 5:15 (TLB) 33
34 We try to live in such a way that no one will ever be offended or kept back from finding the Lord by the way we act, so that no one can find fault with us and blame it on the Lord. 2 Corinthians 6:3 34
35 Therefore, since it is by God's mercy that we are engaged in this ministry, we do not lose heart. We have renounced the shameful things that one hides; we refuse to practice cunning or to falsify God's word; but by the open statement of the truth we commend ourselves to the conscience of everyone in the sight of God. 2 Corinthians 4:1-2 35
36 Christian ethical foundation: The person and character of God A biblical worldview (creation, fall, redemption, renewal) The grace God The presence of God through His Holy Spirit 36
37 Sources of ethical standards: 1. Religion (the Bible and teachings of Jesus) 2. Utilitarian approach (most good/least harm) 3. Rights approach (human dignity, freedom of choice, access to truth, protection from harm, privacy, etc.) 4. Fairness or Justice approach (equality) 5. Common good approach (interlocking relationships of society call for a system of laws, effective police and fire departments, health care, a public educational system, or even public recreational areas) 6. Virtue approach (focus on ideals: What kind of person will I become if I do this?) 37
38 Outline The meaning of ethics. Foundations for ethical standards. How are ethical values developed? Why good people make bad choices. Developing an ethical Church. GCAS values. Ethical road hazards for travelers. A personal code of conduct. 38
39 How are ethical values developed? 39
40 Values don t simply transmit like language and culture. Values come from deliberate choices. 40
41 How effective are these traditional ways of seeking to impart values that have life-long usefulness: 1. Moralizing/preaching? 2. Hoping/resolving? 3. Modeling? 41
42 Moralizing: Ordering, preaching, coaxing, advising, (may not be persuasive) Hoping/resolving: A good start but is usually abandoned before permanent change. Modeling: May be helpful but usually only within a deep bond of mutual respect. (There are pervasive and conflicting models all around us.) 42
43 Embracing an ethical value usually involves: 1. Thinking about a proposed position, behavior or plan. Significant thinking, analyzing, interpreting, observing, hypothesizing, considering alternatives. 2. Choosing a value freely from among alternatives and praying for God s help in exhibiting the value. 43
44 Embracing ethical values...: (cont d) 1. Feeling positive about the value and affirming it publicly. Feelings (emotions) interact with our thinking. 1. Acting consistently on values/beliefs/ goals. 44
45 Outline The meaning of ethics. Foundations for ethical standards. How are ethical values developed? Why good people make bad choices. Developing an ethical Church. GCAS values. Ethical road hazards for travelers. A personal code of conduct. 45
46 When good people make bad decisions: Not all misdeeds are done by bad people. Unethical acts can result from failings rather than selfishness and greed. Good people can inadvertently make unethical decisions. Ethical actions require more than just good intention. 46
47 Ethical judgment traps: Highly repetitive situations that engender automatic response patterns (what pyschologists refer to as scripts ). Ford Pinto recall 47
48 When I was dealing with the first trickling-in of field reports that might have suggested a significant problem with the Pinto, the reports were essentially similar to many others that I was dealing with (and dismissing) all the time... I was making this kind of decision automatically every day. I had trained myself to respond to prototypical cues, and these didn't fit the relevant prototype for crisis cases. Dennis Gioia, Ford recall coordinator 48
49 Ethical judgment traps: Highly repetitive situations that engender automatic response patterns (what pyschologists refer to as scripts ). Ford Pinto recall Nurse following doctor s written orders misread the directions to place ear drops in a patient's right ear as "place in Rear." Approaches by homeless or suffering 49
50 Ethical judgment traps: Highly repetitive situations that engender automatic response patterns (what pyschologists refer to as scripts ). Busyness and distractions. Speech by divinity students Car trip to important meeting Moral exclusion of groups. Conflict situations 50
51 Outline The meaning of ethics. Foundations for ethical standards. How are ethical values developed? Why good people make bad choices. Developing an ethical Church. GCAS values. Ethical road hazards for travelers. A personal code of conduct. 51
52 Developing an ethical Church 52
53 7 signs of ethical collapse: 1. Pressure to maintain those numbers 2. Fear and silence (dissent not tolerated) 3. Bigger-than-life president/ceo, aspiring colleagues 4. Weak boards 53
54 7 signs of ethical collapse: 1. Conflicts of interest not addressed 2. Success is all that matters 3. Goodness in some areas atones for evil in others 54
55 Employees stunned most academics by saying that the code of ethics for their company had very little influence on whether they made ethically correct choices. It was the culture of their companies and the examples set by their leaders that influenced their conduct. from a 2004 study by the Journal of Business Ethics 55
56 By portraying everything in shades of gray, we create an ethical culture that leads to a constantly moving line of propriety...this method of analysis, in which there is no right and wrong, is part of the problem with corporate cultures and contributes to collapse. Jennings, The Seven Signs of Ethical Collapse, p
57 Case #1: The conference constituency meeting will be held next year. The administration wishes to present a report of good progress. The baptismal goal for this year is two times higher than the achievements of any previous year. Each pastor is assigned a goal. Pastors who reach baptismal goals will receive an ipod free of charge. 57
58 Case #2: The conference budget for the year is based on a 5% tithe increase over the last year. Ten months into the year tithe income is not keeping pace with the budget. There is not enough money to pay salaries so the officers agree to borrow from designated funds with the intent of returning the funds next year. 58
59 Case #3: An anonymous donor has given $10,000 to the local church. The pastor and church treasurer agree to place this in a Pastor s discretionary fund. Rather than keeping it on the local church records the fund is transferred to the conference but is completely under the control of the pastor. 59
60 Case #4: You are a member of the nominating committee. Two names are under consideration for the post of president. One person is from your language group and you know him well. The other is from another language group in the territory and you do not know much about him. You vote for the one you know because he is a good man and knows our needs. 60
61 Case #5: You have has a busy schedule of work and travel for the last three weeks. The place where you are now is a tourist attraction. You could complete your work here in two days but why not take a little time off each day, thus extending your stay (and per diem allowance) by one or two days? After all, one should live a balanced life. 61
62 Case #6 The president of the organization takes travel advances each month but is very delinquent in submitting travel expense reports. Halfway through the quinquennium the outstanding travel advances exceed his annual salary. 62
63 Stealing in nonprofit orgs: Report to the Nation on Occupational Fraud and Abuse 2004 by the Association of Certified Fraud Examiners (ACFE) 63
64 In the case of large corporations (Enron, WorldCom and other forprofits) the primary offense was misrepresentation of financial information. In nonprofits, the crimes tend to involve unauthorized taking of funds for personal use (payroll and check tampering, false invoices, skimming). 64
65 Occupational fraud: Fraudulent disbursement Paying false or inflated bills Payroll time reports, ghost employees Expense reports falsified claims Check tampering Falsified cash register disbursements 65
66 Finding fraud: Relatively rare for fraud to be found via the audit process. Fraud caught by: Tips by employee/vendor/customer 43% Internal audit/internal controls 25% Caught by accident 22% External audit 10% 66
67 Predictive characteristics: Employees with high personal debts. Employees who live beyond their means. Workplace without clear lines of authority and procedures for transaction authorization (bank reconciliations by someone not authorized to deposit/withdraw). Financial personnel who refuse to take vacations. 67
68 Management of fraud risk: Careful background checks on employees. Insurance or bonding for employees with access to/control of cash or other assets. Culture of safety in reporting of suspected fraud or abuse. Periodic review of internal controls. 68
69 Creating an organizational culture of constructive self-criticism is not a choice but an obligation for leaders. 69
70 Building Trust 70
71 To be trusted is a greater compliment than to be loved. George Macdonald ( ) 71
72 % of Canadians who trust: Diff Fire fighters 96% 98% -2 Nurses 94% 96% -2 Farmers 91% 93% -2 Doctors 89% 92% -3 Teachers* 88% Police Officers 80% 88% -8 Judges 73% 80% -7 Notaries 71% 82% -11 Bankers 70% 72% -2 Church Representatives 65% 73% -8 * Since teachers are more in contact with the public than scientists they have replaced the latter in the 2003 survey. Source: Leger Marketing 72
73 % of Canadians who trust: Diff Pollsters 62% 70% -8 Senior Public Servants 50% 56% -6 Lawyers 48% 54% -6 Journalists 46% 53% -7 Insurance Brokers 46% 51% -5 Real Estate Agents 40% 44% -4 Unionists 39% 41% -2 Publicists 38% 47% -9 Car Salespeople 20% 23% -3 Politicians 14% 18% -4 Source: Leger Marketing 73
74 Trustworthiness = C + R + I S Where C = credibility R = Reliability I = Intimacy S = Self-orientation Galford and Drapeau, The Trusted Leader 74
75 Credibility is intellectual Trust is intuitive 75
76 Personal trust: trust that employees and church members have in individual leaders Organizational trust: trust that an organization s purposes are valid and that its policies will be fairly administered and implemented as stated 76
77 Building trust: 1. Careful and attentive listening 2. Willingness to be influenced 3. Avoiding the exploitation of another s weakness 4. Commitment to fairness with oneself and others 5. Fulfilling promises, honoring commitments 77
78 Building trust: (cont d) 1. Transparency, being straight forward in dealing with others 2. Subjecting emotions to objectivity and reason 3. Valuing others 4. Admitting errors and weaknesses 5. Demonstrating principle-based convictions in moments of crisis 78
79 Building trust is a primary leadership task in voluntary organizations. It is a global leadership task in the Seventh-day Adventist Church. 79
80 Internal Controls Why we need them and what they are! 80
81 Internal controls refer to the ability of an organization to monitor the reliability and integrity of financial and operating information. 81
82 Why internal controls are needed: To safeguard assets from Waste Fraud Unauthorized use To protect people from false accusation 82
83 Basic features: Executive committee members and unit officers set an example of integrity and ethical behavior. There is a system to manage conflicts of interest. The organization has reasonable objectives and goals there is no undue pressure for short-term results. Safe way to report improper conduct. 83
84 Basic features: (cont d) Reports indicate decisions carried out The organization has written procedures for: Accounting How many/whose signatures on checks Computer security Personnel Purchasing Records retention Travel 84
85 Basic features: (cont d) The organization has a code of conduct and the code is known by employees. The organization follows through with discipline for unacceptable conduct. Comprehensive budget approved by the executive committee. Regular and timely financial statements Comparison of actual to budget Comparison of actual to previous year 85
86 Basic features: (cont d) Segregation of duties: No one person handling the receiving, receipting, accounting, and depositing of cash Approval of expenditures by a designated person. Bank reconciliations by someone who is not the accountant. Frequent (daily) monitoring of cash on hand. 86
87 Basic features: (cont d) A professional and independent financial oversight system. Since responsibility and decision-making is widely dispersed throughout the Seventhday Adventist organization a church member should have confidence that the financial oversight system assures credibility in financial management and accountability across the entire range of denominational structure. 87
88 What can we do, individually or collectively, to enhance organizational trust, that is, to increase the level of confidence that members have in Church organization and administration in general? 88
89 I cannot persuade them (my church attending nephews and adult children and their friends) to give tithe to the conference system. They believe the layers of self retaining administrative leaders in the church will never change until the present organizational system comes crashing down around them. They say that no one in the system has the "guts" to face the needed changes and establish efficiency and expert administration since it means cutting their own self sustaining structure and benefits. 89
90 They want the majority of their tithe dollars going to the spread of the Gospel of Jesus and his Grace--only then will they pay their tithe to the system again. Now their tithe money goes to local SDA schools, Maranatha, CARE, ADRA, Student Missions and any other good place--but not to the SDA church tithe! No, not for "administrative waste and bad judgment"! 90
91 Outline The meaning of ethics. Foundations for ethical standards. How are ethical values developed? Why good people make bad choices. Developing an ethical Church. GCAS values. Ethical road hazards for travelers. A personal code of conduct. 91
92 GCAS Values Delivering excellence through: Service Integrity Respect Professionalism Efficiency 92
93 Universal Principles and Values E - Empathy - understanding the thoughts and needs of others P - Patience - taking the time to understand before we act I - Integrity - honesty and truth in all situations C - Courage - doing what is right even when it is difficult 93
94 Ethics filters PLUS P = Policies Is it consistent with my organization's policies, procedures and guidelines? L= Legal Is it acceptable under the applicable laws and regulations? U = Universal Does it conform to the universal principles/values my organization has adopted? S= Self Does it satisfy my personal understanding of right, good and fair? 94
95 Six Steps to Ethical Decision Making Step 1: Define the problem PLUS Step 2: Identify alternatives Step 3: Evaluate alternatives PLUS Step 4: Make the decision Step 5: Implement the decision Step 6: Evaluate the decision PLUS 95
96 Ethical living results from choices based on thoughtful application of core values. 96
97 Outline The meaning of ethics. Foundations for ethical standards. How are ethical values developed? Why good people make bad choices. Developing an ethical Church. GCAS values. Ethical road hazards for travelers. A personal code of conduct. 97
98 Ethical road hazards for travelers Spiritual interference Irritation Lack of routine Isolation and anonymity Ungodly influences 98
99 Ethical safety in travel: Maintain a daily devotional time. Get enough sleep. Get exercise. Stay in touch with family. Attend church on Sabbath. Awareness of being observed. 99
100 Outline The meaning of ethics. Foundations for ethical standards. How are ethical values developed? Why good people make bad choices. Developing an ethical Church. GCAS values. Ethical road hazards for travelers. A personal code of conduct. 100
101 The six mistakes of man: 1. The delusion that personal gain is made by crushing others. 2. The tendency to worry about things that cannot be changed or corrected. 3. Insisting that a thing is impossible because he cannot accomplish it. 101
102 The six mistakes of man: (cont d) 1. Refusing to set aside trivial preferences. 2. Neglecting development and refinement of the mind Attempting to compel others to believe and live as he does. Cicero ( B.C.) 102
103 From the error of others a wise man corrects his own. Publilius Syrus (First Century B.C.) 103
104 Attribution error: We take the credit for our successes and blame others for our failures. 104
105 Careful cultivation of Christian values in life is important because: At crucial moments of choice, most of the business of choosing is already over. Iris Murdoch, The Sovereignty of Good 105
106 When a Christian jealously guards his secret life with God, his public life will take care of itself. Oswald Chambers ( ) 106
107 Intense devotion to God by the individual or groups brings substantial outward success. Outward success brings a sense of accomplishment and a sense of responsibility for what has been achieved and for further achievement... The sense of accomplishment and responsibility reorients vision away from God to what we are doing and are to do... The mission increasingly becomes the vision. It becomes what we are focused upon... Goals occupy the place of the vision of God. Dallas Willard, The Great Omission, p
108 Our lives begin to end the day we become silent about the things that matter. Martin Luther King, Jr. 108
109 Press with determination in the right direction, and circumstances will be your helpers, not your hindrances. E G White, Christ s Object Lessons
110 The development of all our powers is the first duty we owe to God and to our fellow men. No one who is not growing daily in capability and usefulness is fulfilling the purpose of life. E G White, Christ s Object Lessons, p
111 On the last day, that great day of the feast, Jesus stood and cried out, saying, If anyone thirsts, let him come to Me and drink. He who believes in Me, as the Scripture has said, out of his heart will flow rivers of living water. John 7:37-38 (NKJV) 111
112 Your influence in the world is not dependent on your skills or your position. 112
113 If you want to be a person of influence the most important thing is to get right with Jesus Christ and he will make your life influential. 113
114 What is your code of conduct? 114
115 Leadership Pledge Recognizing that the call to leadership in the church is a call to service as modeled in the life and ministry of Jesus Christ, and Realizing the manner in which a leader s life creates a wide and lasting influence, I solemnly declare that, by God s grace: I dedicate my life to humble service in whatever capacity or post I may be called upon to hold. 115
116 Leadership Pledge (cont d) I covenant to lead a spiritual life of Bible study, prayer and Christlike behavior. I accept my leadership assignment as a sacred trust which is to be used for the glory of God. I promise to uphold the high moral standards of Christian life and leadership. I vow to be a faithful steward and do my utmost to protect the interests of the church and to nurture its development. 116
117 Leadership Pledge (cont d) I determine to strive for excellence in every aspect of my life and work. I pledge to demonstrate a spirit of cooperation and openness with my colleagues, realizing that in a multitude of counselors there is wisdom. I commit myself to the principles of shared leadership in the church. I devote myself to the noble purpose of advancing the kingdom of God and preparing people for the return of Jesus. 117
118 Outline The meaning of ethics. Foundations for ethical standards. How are ethical values developed? Why good people make bad choices. Developing an ethical Church. GCAS values. Ethical road hazards for travelers. A personal code of conduct. 118
119 Live out thy life within me O Jesus, King of kings. Be thou thyself the answer To all my questionings. Live out thy life within me In all things have thy way. I, the transparent medium Thy glory to display. 119
120 References: Ethics Resource Center, Greenlee, Janet; Fishcer, Mary; Gordon, Teresa, Keating, Elizabeth; How to Steal from a Nonprofit: Who Does It and How to Prevent It, The Nonprofit Quarterly, Winter 2007 Harshbarger, Scott and Crafts, Amy; The Whistle-blower: Policy Challenges for Nonprofits, The Nonprofit Quarterly, Winter 2007 Jennings, The Seven Signs of Ethical Collapse Markkula Center for Applied Ethics at Santa Clara University, A Framework for Thinking Ethically, Primary contributors include Manuel Velasquez, Dennis Moberg, Michael J. Meyer, Thomas Shanks, Margaret R. McLean, David DeCosse, Claire André, and Kirk O. Hanson. Moberg, Dennis J, When Good People Do Bad Things At Work, Winningham, Wade; Temptation Next Exit, Discipleship Journal, January-February 2008 Various conversations with Seventh-day Adventist Church leaders. 120
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